S-3961               _______________________________________________

 

                                                   SENATE BILL NO. 4991

                        _______________________________________________

 

State of Washington                              49th Legislature                              1986 Regular Session

 

By Senator Goltz

 

 

Read first time 1/24/86 and referred to Committee on Education.

 

 


AN ACT Relating to the tuition endowment fund; authorizing the sale of bonds; and adding new sections to chapter 28B.80 RCW.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

          NEW SECTION.  Sec. 1.     The tuition endowment fund is hereby established in the custody of the state treasurer.  The higher education coordinating board shall deposit in the fund all proceeds from the sale of bonds authorized under section 9 of this act, any interest from the investment of the fund, and any money received for the purposes of the fund such as private contributions or grants from the federal government.  Moneys may be spent only for the purposes under section 6 of this act.  Disbursements from the fund shall be on authorization of the higher education coordinating board.  The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

 

          NEW SECTION.  Sec. 2.     The tuition endowment fund program is created to provide incentive for students from low-income families to complete high school and pursue and complete a college education.  Moneys from the tuition endowment fund, as available, shall be used to pay the tuition of eligible students at the state institutions of higher education.  Tuition payments for any one student shall be made for not more   than four academic years during not more than five consecutive calendar years.

 

          NEW SECTION.  Sec. 3.     A student is eligible for tuition payments from the tuition endowment fund if the student:

          (1) Meets the admission requirements of the institution he or she wishes to attend;

          (2) Is accepted for admission into the institution;

          (3) Has a family which meets the income assistance eligibility criteria of the department of social and health services;

          (4) Applies for tuition payments from the fund after the completion of the eighth grade but before beginning the eleventh grade;

          (5) Meets the requirements for a resident student under chapter 28B.15 RCW; and

          (6) Complies with the rules adopted by the board.

 

          NEW SECTION.  Sec. 4.     (1) The higher education coordinating board shall administer the tuition endowment fund program.  The board shall adopt necessary rules for administering the program including but not limited to rules for accepting student applications, awarding tuition payments, promoting private contributions to the endowment fund, and reporting by students.  Rules for accepting students in the program shall provide that eligible students will be accepted in the order that the applications are received, as funds are available.

          (2) The higher education coordinating board shall make payments on behalf of an accepted student directly to the applicable institution of higher education for a maximum of four academic years during not more than five calendar years so long as the student is in attendance at the institution and is meeting the requirements of the institution.

          (3) The higher education coordinating board shall conduct informational meetings, at least annually, for all qualifying students and potentially eligible students beginning with tenth grade students.  The meetings shall be designed to inform the students of the higher educational opportunities in Washington and the value of higher education.

 

          NEW SECTION.  Sec. 5.     A state institution of higher education shall transmit any refunds of tuition for a student participating in the program to the tuition endowment fund.

 

          NEW SECTION.  Sec. 6.     The proceeds of the sale of bonds issued under section 9 of this act shall be deposited in the tuition endowment fund.  The bond proceeds shall be invested by the state investment board and all investment earnings shall be placed in the tuition endowment fund.  The investment earnings and any contributions and grants shall be used by the higher education coordinating board to make tuition payments under section 2 of this act and for the administrative costs of bond issuance and retirement.  The bond proceeds shall remain in the fund as an endowment to earn investment income to support future tuition payments.

 

          NEW SECTION.  Sec. 7.     The legislature recognizes that sufficient revenues will be generated from student operating fees to pay the principal and interest on bonds sold to fund the tuition endowment fund.

 

          NEW SECTION.  Sec. 8.     The higher education coordinating board shall, by December 1988, make a projection of the five year demand for tuition payments for eligible students and report its findings to the legislature.  If the investment income and moneys from other sources in the fund are not sufficient to meet the projected demand, the board may request the legislature to authorize the sale of additional bonds.

 

          NEW SECTION.  Sec. 9.     For the purpose of providing funds for the tuition endowment fund, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of five million dollars, or so much thereof as may be required, to provide the principal for the tuition endowment fund.

          Bonds authorized in this section shall be sold in such manner, at such time or times, in such amounts, and at such price as the state finance committee shall determine.  The state finance committee may obtain insurance or letters of credit and may authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring the payment or enhancing the marketability of bonds authorized in this section.  Promissory notes or other obligations issued pursuant to this section shall not constitute a debt or the contracting of indebtedness under any constitutional or statutory indebtedness limitation if their payment is conditioned upon the failure of the state to pay the principal of or interest on the bonds with respect to which the same relate.

          Bonds authorized under this section shall be sold in accordance with chapter 39.42 RCW.

 

          NEW SECTION.  Sec. 10.    Both principal of and interest on the bonds authorized by section 9 of this act shall be payable from the state general obligation bond retirement fund.  The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest.

          The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on such bonds in accordance with the provisions of the bond proceedings.  The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the state general obligation bond retirement fund, or a special account in such fund, such amounts and at such times as are required by the bond proceedings.

          Bonds issued under section 9 of this act shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.

          The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

 

          NEW SECTION.  Sec. 11.    The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 9 of this act, and section 10 of this act shall not be deemed to provide an exclusive method for the payment.

 

          NEW SECTION.  Sec. 12.    The bonds authorized  in section 9 of this act shall be a legal investment for all state funds or funds under state control and for all funds of any other public body.

 

          NEW SECTION.  Sec. 13.    Sections 1 through 12 of this act are each added to chapter 28B.80 RCW.

 

          NEW SECTION.  Sec. 14.    If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.